To Federal Awarding Agency The City of Osseo, Wisconsin respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESSES 2025-001 Limited Segregation of Duties Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to work to achieve segregation of duties whenever cost effective. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-002 Material Audit Adjustments Recommendation: The City should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year end balances in accordance with Generally Accepted Accounting Principles (GAAP). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to propose audit adjustments necessary to adjust accounts in accordance with GAAP. Management will review and approve these entries prior to recording them. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-003 Annual Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to prepare the annual financial statements and related footnote disclosures in accordance with GAAP. Management will review, approve and accept responsibility for these financial statements and related footnote disclosures prior to issuance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-004 Procurement Policy Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance and design controls to ensure procurement requirements are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will review procurement policies and procedures and adopt necessary changes to meet the requirements of Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. Any questions regarding these corrective action plans can be directed to Stephanie Nelson, Clerk/Treasurer, 13712 8th Street, Osseo, WI 54758 or 715-597-2207.